Microsoft’s Xbox chief Phil Spencer spoke to Engadget at E3 2014 discussing Microsoft’s focus on games at E3, virtual reality platform, bringing legacy Xbox 360 games to Xbox One and more. Watch the full interview above.

His response related to Oculus Rift and Sony’s Project Morpheus,

“I look at VR as an interesting technology. I’m watching what’s going on out there; I don’t really think it’s a mainstream technology yet today. The nice thing at Microsoft and Xbox is we’ve remained invested in experimenting with a lot of what’s out there, whether it’s voice, or motion. Right now I’d say we have our skunkworks stuff that we’re working through, but right now we’re watching how the VR space evolves to see if it ends up as a mainstream consumer scenario.”

We already know via couple of leaked documents and patents that Microsoft is working on VR headset. Phil has now confirmed that they their skunkworks stuff right now, but still figuring out how to take it to mainstream. And the second important thing he revealed was related to bringing Xbox 360 games to Xbox One,

“So, not to geek out on it, Xbox 360 is obviously a Power PC-based architecture. We’ve got an x86 architecture on Xbox One, which makes the translation a little more challenging. The interesting thing — the Xbox 360 has an amazing content catalog, one of the largest catalogs ever created. When I think about that content, I don’t want that content to just waste away. I want it to be content people can play for many years; there are a lot of different ways for us to enable that. It’s something that I’m sitting down with the team and we’re brainstorming on. We don’t really have a plan yet that I can communicate in a way, but I can say I want to make sure that that content is stuff people can play. I think that’s an important part of investing in an online, connected community, is that the content I acquire and I’m playing is something I can carry forward with me. Right now there isn’t a plan, just to be clear to people. But it’s something that we have conversations about.”